"Er hangt een lijst met namen aan de muur."
Translation:There is a list with names hanging on the wall.
it says "hangt" means hang, and it's "on the wall" so not sure why the English translation of "there hangs' isn't valid...
Because "There hangs a list with names on the wall" is a direct translation of the Dutch sentence and it's not correct English.
It's perfectly correct English, even though we'd be more likely to say "There is a list with names hanging on the wall" or "There is a list with names on the wall"